Skip Ribbon Commands
Skip to main content

​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​

 

‭(Hidden)‬ Catalog-Item Reuse

Americans Split on Buying Insurance from Amazon, Tesla

As many as 55% of consumers would be interested in buying a hypothetical insurance product from Amazon over traditional insurance carriers, according to a report by Breeze.
Sponsored by
americans split on buying insurance from amazon, tesla

Are consumers willing to go to companies like Amazon, Facebook or Google for insurance? What about Zillow or Trulia for renters or homeowners insurance? CVS for health insurance? Tesla or other car manufacturers for auto insurance?

At the beginning of the year, Breeze, a disability insurance InsurTech, asked American insurance consumers these questions.

As many as 55% of consumers would be interested in buying a hypothetical insurance product from Amazon over traditional insurance carriers, according to Breeze, while 46% and 38% said the same for Google and Facebook, respectively.

“Of the three tech behemoths, Amazon is the most trusted by consumers to offer insurance products. Perhaps because Amazon has forayed into health insurance before; it launched the since-shut down Haven in 2018 and more recently launched Amazon Care," the report said. “Moreover, Amazon has explored other financial services—like checking accounts—so there is some consumer familiarity when it comes to Amazon and personal finance."

In April last year, Amazon entered into an agreement with Marsh to give small business sellers on Amazon access to affordable product liability coverage.

The fact that Facebook lags behind the other two tech behemoths “may signify consumer trust issues for Facebook as it battles a seemingly never-ending supply of scandals that have led to a total company rebranding," the report said.

Google, on the other hand, is poised to enter the insurance market both through its acquisition of Fitbit, which offers a trove of health data, and its Global Insurance & Risk Management Industry Solutions initiative, which is building a cloud-based Software-as-a-Service data and analytics platform for insurers and reinsurers.

In the auto insurance market, 66% would be interested in buying auto insurance from an automobile manufacturer like Tesla, Ford, or Honda instead of from a traditional carrier. 34% would not. “Of all the hypotheticals asked, consumers were most receptive to buying auto insurance from a carmaker like Tesla," the report said. Tesla already offers insurance, as well as a usage-based insurance product, to drivers in some states and has plans to roll out the product in more states this year.

Many other automakers have begun offering auto insurance to purchasers of their vehicles. Last year, Toyota, Jeep, Dodge, Fiat, Ford and GM either launched or announced plans to launch an auto insurance product.

Additionally, 59% would be interested in life or health insurance from CVS or Walgreens, “and this too might not be that far off," the report noted. “In 2018, CVS Health completed a $70 billion merger with Aetna, a healthcare insurance giant. By combining funds and analytics, the two companies hope to tackle healthcare problems together, like bringing down costs."

Sixty-one percent would be interested in buying renters or homeowners insurance from a real estate company like Zillow or Trulia instead of from a traditional carrier, while 39% would not. Currently, neither Zillow nor Trulia offer homeowners, but instead refers users to companies that write coverage in a given ZIP code. Trulia also enables house hunters to compare homeowners insurance prices.

Meanwhile, a slight majority of respondents, 51%, said they'd be interested in buying disability insurance from an HR and payroll company like Zenefits or Intuit Quickbooks.

Will Jones is IA editor-in-chief.

16320
Thursday, February 3, 2022
Technology